Bally’s completes acquisition of Tropicana Evansville
Bally’s announced that it completed its acquisition of the Tropicana Evansville casino operations from Caesars Entertainment
As part of the transaction, Bally’s also acquired the unencumbered rights to the Evansville operations’ sports betting and iGaming skins, which will provide the Company with greater access to the growing Indiana gaming market.
George Papanier, President and Chief Executive Officer of Bally’s Corporation, said, “The Tropicana Evansville acquisition closing marks another major accomplishment in what has already been a truly remarkable year for Bally’s.
As we continue to implement our growth and diversification strategy with precision, we are excited to welcome the Tropicana Evansville into the Bally’s family and look forward to the opportunity to provide our first-in-class land-based and interactive entertainment offerings to the Indiana gaming market.”
As previously announced, Bally’s acquired the Tropicana Evansville for $140 million. As part of the transaction, an affiliate of Gaming & Leisure Properties, acquired the real estate associated with the Tropicana Evansville casino for $340 million, which it is leasing to Bally’s for $28 million per year, subject to escalation.
GLPI also acquired the real estate associated with Bally’s Dover Downs casino for $144 million, which it is leasing back to Bally’s for $12 million per year, subject to escalation. Both leases are governed by a master lease agreement with GLPI, which has an initial term of 15 years and includes four, five-year options.
As a result of this structure, no cash outlay was required by Bally’s at closing. Bally’s expects this transaction to be immediately accretive to earnings.